![\"Citizens](\"https:\/\/www.europesays.com\/korea\/wp-content\/uploads\/2026\/06\/news-p.v1.20260623.53519fa44b15467a97ea92e43796a95b_P1.jpg\"\/ "\\"Korea's")
Citizens come and go at the National Pension Service’s Northern Seoul Regional Headquarters in Seodaemun-gu, Seoul. News1<\/p>\nCitizens come and go at the National Pension Service’s Northern Seoul Regional Headquarters in Seodaemun-gu, Seoul. News1<\/p>\n
The National Pension Service (NPS) has been unleashing large volumes of stock sales on the main bourse for consecutive days. The selling reflects the fund’s domestic equity allocation exceeding its permitted limit as the KOSPI broke past the 9,100 mark.<\/p>\n
NPS Rushes to Adjust Allocation Ahead of Rebalancing Moratorium End in Late June<\/p>\n
According to the Korea Exchange (KRX) on Wednesday, pension funds sold off approximately 2.5 trillion won worth of stocks on the main bourse over the past month.<\/p>\n
In particular, net selling over the four trading days from the 17th to the 22nd of this month reached 1.2696 trillion won. On a daily basis, selling continued at 167.6 billion won on the 17th, 392 billion won on the 18th, 526.7 billion won on the 19th, and 183.3 billion won on the 22nd. The market estimates that most of this volume originated from the NPS.<\/p>\n
The NPS manages its portfolio by setting target allocations for each asset class, including stocks, bonds, and alternative investments, and buying or selling to adjust when an allocation deviates from its limit. The structure involves selling when the market rises and buying when it falls, maintaining stable long-term returns.<\/p>\n
In January this year, the NPS decided to temporarily halt this adjustment (rebalancing) until the end of June. Last month, it raised the target allocation for domestic stocks itself from 14.9% to 20.8%, and widened the permitted range to a maximum of \u00b18 percentage points. As a result, the upper limit on the domestic stock allocation rose to 28.8%.<\/p>\n
However, as the KOSPI rose more than expected, the NPS’s domestic stock allocation reportedly exceeded even this ceiling, climbing above 30%. With the moratorium set to end in late June, the fund now faces a situation where it must reduce its allocation. Some in the market observe that up to 60 trillion won in domestic stock sales could be needed to normalize the allocation.<\/p>\n
Lee Kyoung-min, a researcher at Daishin Securities, analyzed: “As of the 19th, the domestic stock allocation within the NPS portfolio is estimated to have expanded to 31.4%,” adding, “selling pressure is increasing.”<\/p>\n
Likelihood of Repeated Sell-Off Bomb Limited… Distributed Selling Expected to Prevail<\/p>\n
That said, the dominant view in the market is that a short-term concentrated sell-off, as seen in the past, is unlikely to recur. This is because the NPS is expected to reduce its daily rebalancing scale to minimize market shock and to choose a method of distributing volume over a long period.<\/p>\n
Looking at the pension funds’ top sell-off stocks over the past month, Samsung Electro-Mechanics recorded the largest net selling at 777 billion won. It was followed by SK Square (474.9 billion won), Mirae Asset Securities (292.1 billion won), Doosan (211.7 billion won), LG Innotek (187.9 billion won), Samsung Electronics preferred shares (185.8 billion won), and POSCO Holdings (155.3 billion won). The interpretation follows that profit-taking and asset allocation adjustments are proceeding in tandem amid the market’s sharp rise.<\/p>\n
On the other hand, even amid the large-scale net selling stance, some stocks were instead being bought, it was confirmed. During the same period, Naver (459.8 billion won), SK hynix (431.8 billion won), Hyundai Mobis (158.9 billion won), Samsung Life Insurance (110 billion won), and Shinhan Financial Group (101.6 billion won) were among the top buying stocks.<\/p>\n","protected":false},"excerpt":{"rendered":"Citizens come and go at the National Pension Service’s Northern Seoul Regional Headquarters in Seodaemun-gu, Seoul. News1 The…\n","protected":false},"author":2,"featured_media":61458,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[34626,34625,337,341,34624,864,5174,7259,34627,3164],"class_list":["post-61457","post","type-post","status-publish","format-standard","has-post-thumbnail","category-korea-exchange","tag-domestic-stock-allocation","tag-equity-rebalancing","tag-korea-exchange","tag-korea-stock-market","tag-kospi-9100","tag-krx","tag-national-pension-service","tag-nps","tag-pension-fund-selling","tag-samsung-electro-mechanics"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/61457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=61457"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/61457\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/61458"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=61457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=61457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=61457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}